不自然大家中午好啊啊非常荣幸我们今天请到了这个中国友单这边的侯总来给我们做一个啊关于这个公司的一个近况的一个更新然后这个中国有开放这个啊一些提问然后也是非常难得有机会能和公司这边进行一个一对一的这个交流那啊首先我们先邀请侯总来先做一个分享来有请嗯 好的非常感谢王老师的介绍也非常感谢有机会能参加这个活动跟线上的投资人朋友们分享介绍一下友赞近期的一些情况主要我是来自中国友赞投资者关系团队的Selina然后如果大家后续对友赞有任何问题都欢迎 接下来呢我会花一点时间跟大家汇报一下友赞在这几年的一个业务的情况 然后财务数据的一个情况然后整体的数字抓手就是我们在2023年年度业绩为抓手向大家汇报因为我们也是按今年开始我们是不再发一季报三季报我们是按照半年报和年报的形式对外进行数据的披露所以我们会在预计应该是在8月份的时候发我们今年半年度的一个业绩那目前我跟大家介绍的是我们整个2023年度年度数据的一个情况 如果大家对这个PPT有兴趣的话也可以到我们中国友谈的官网投资者关系频道这个页面找到我们历次业绩的这个PPT我们都挂在我们的官网上也欢迎大家去下载查阅 那先花几分钟的时间跟线上的这个投资人朋友们介绍一下友在啊不知道大家6 ...

好的非常感谢王老师的介绍也非常感谢这个 有机会能参加这个活动跟线上的投资人朋友们分享介绍一下友站近期的一些情况主要我是来自中国友站投资者关系团队的Selina然后如果大家后续对友站有任何问题都欢迎和我们券商 也可以直接跟公司联系那我们公司这个投资者团队的邮箱我也放在了这页介绍上面大家可以通过这个邮件联系到我们进行跟公司的一个交流那接下来呢我会花一点时间跟大家汇报一下 这几年的一个业务的情况然后财务数据的一个情况然后整体的数字抓手就是我们在2023年年度业绩为抓手向大家汇报因为我们也是按今年开始我们是不再发一级报三级报我们是按照半年报和年报的形式对外进行数据的披露所以我们会在预计应该是在八月份的时候发我们今年半年度的一个业绩 跟大家介绍的是我们整个2023年度年度数据的一个情况我翻一下如果大家对这个PPT有兴趣的话也可以到我们中国友赞的官网投机者关系频道这个页面找到我们历次业绩的这个PPT我们都挂在我们的官网上也欢迎大家去下载查阅 那先花几分钟的时间跟线上的这个投资人朋友们介绍一下柳瞻不知道大家618马上就要来了哈不知道大家有没有在微信生态内去下去下单订购消费这样子的一个经历那如果大家在微信里面无论是小程序的方 ...

Financial Performance - Revenue for 2023 was RMB 1,448,376, a decrease of 3.2% compared to RMB 1,496,977 in 2022[13]. - Gross profit margin improved to 69.2% in 2023 from 64.3% in 2022, an increase of 4.9 percentage points[13]. - Loss before tax significantly reduced to RMB (52,625) in 2023 from RMB (658,407) in 2022, a decrease of 92.0%[13]. - Loss attributable to owners of the Company decreased to RMB (50,475) in 2023 from RMB (645,398) in 2022, a reduction of 92.2%[13]. - Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) improved to RMB 7,429 in 2023 from RMB (302,727) in 2022, a change of 102.5%[13]. - Adjusted non-HKFRS earnings for the year were RMB 35,517 in 2023, compared to RMB (339,537) in 2022, reflecting a change of 110.5%[13]. - The Group recorded a loss from operations of RMB 21,323,000 in 2023, significantly improved from a loss of RMB 558,304,000 in 2022[76]. - The adjusted earnings before interest, tax, depreciation, and amortization improved to RMB 35,517,000 in 2023 from a loss of RMB 339,537,000 in 2022[76]. - The Group's total loss for the year was RMB 50,475,000 in 2023, a significant reduction from a loss of RMB 645,398,000 in 2022[77]. Assets and Liabilities - Current assets decreased by 21.5% to RMB 3,887,031, while total assets fell by 17.8% to RMB 5,395,014[14]. - The total liabilities decreased by 20.5% to RMB 4,386,124, while equity attributable to owners of the Company fell by 27.7% to RMB 1,021,330[14]. - As of December 31, 2023, the Group's cash and cash equivalents were approximately RMB 926,265,000, an increase from RMB 889,944,000 in 2022[102]. - The Group's borrowings as of December 31, 2023, were approximately RMB 470,444,000, down from RMB 480,986,000 in 2022[102]. - The gearing ratio as of December 31, 2023, was 8.7%, compared to 7.3% as of December 31, 2022, primarily due to a decrease in balances with the central bank[102]. Operational Efficiency - The average annual transaction volume per merchant increased by 33%, with medium-to-large merchants showing the most significant growth[17]. - The average renewal fee for the core customer group rose by 21%, particularly a 25% increase in the new retail business segment[17]. - Net cash inflow from operations was RMB 76,998,000, indicating strong operational performance despite market challenges[24]. - The company maintained high service efficiency while acquiring more medium-and large-sized offline customers, despite a wave of store closures among small and micro customers[24]. - The vibrancy rate of new customers across various segments improved, indicating positive renewal leading indicators for future revenue growth[18]. - In 2023, Youzan achieved an adjusted operating profit of RMB 35,517 thousand and a net operating cash inflow of RMB 76,998 thousand, maintaining high efficiency in sales and service despite challenges in the market[26]. Strategic Focus and Future Outlook - The Company is focusing on new product development and market expansion strategies to drive future growth[12]. - The management anticipates continued improvement in financial performance and operational efficiency in the upcoming year[12]. - The Company is exploring potential mergers and acquisitions to enhance its market position and capabilities[12]. - Future guidance indicates a commitment to achieving profitability and sustainable growth in the long term[12]. - Youzan aims to be among the first batch of profitable medium-sized enterprise service companies in China, achieving its business objectives for 2023[22]. - The company aims to exceed a manpower efficiency of 1 million per capita in 2024 through marketing innovation and better utilization of AI tools[32]. Product and Service Development - Youzan's new value positioning focuses on helping merchants with public domain content marketing, private domain operations, and intelligent solutions for sales transformation, marking the most significant upgrade in a decade[27][30]. - The retail industry in China has shifted from a traffic era to a customer operation era, with Youzan providing a comprehensive "intelligent consumer operation" system[28]. - The company plans to enhance its offerings from "digital software" for small and medium-sized merchants to "intelligent consumer operating systems" for brand retailers starting in 2024[31]. - Youzan's AI assistant (Copilot) and automation tools (Agent) are designed to improve operational efficiency and generate targeted business strategy suggestions for merchants[29]. - The company recognizes the growing need for digitalization, automation, and intelligence among enterprises, positioning itself as a key provider of these services[33]. Cost Management - Selling expenses decreased by 20.9% year-on-year, with the selling expense rate dropping to 45.4%[49][51]. - Administrative expenses went down by 47.1% year-on-year, with the administrative expense rate decreasing to 10.7%[49][51]. - The Group's cost of sales decreased by 16.6% to approximately RMB 446,231,000 in 2023 from RMB 535,055,000 in 2022, mainly due to a 15.8% reduction in transaction costs[68]. - Staff costs decreased by 24.2% to approximately RMB 119,312,000 in 2023, down from RMB 157,399,000 in 2022, due to organizational restructuring[68]. Leadership and Governance - Mr. Yu Tao has been appointed as the executive Director and CFO since May 2018, with a background in accounting and experience in financial planning and management[88]. - Ms. Ying Hangyan has served as the executive Director and chief service officer since May 2018, focusing on client services and organizational operations[88]. - The company has a strong leadership team with diverse backgrounds in finance, management, and client services, enhancing its operational capabilities[88][89][90][91]. - The management team has experience in both local and international markets, which is crucial for strategic decision-making and market expansion[88][89]. - The Board comprises seven Directors, including four executive Directors and three independent non-executive Directors, complying with GEM Listing Rules[195]. Shareholder Information - The Directors did not recommend the payment of any dividend for 2023, consistent with 2022[102]. - As of December 31, 2023, Mr. Zhu Ning holds a total interest of 7,433,532,082 shares, representing 22.54% of the company's shareholding[164]. - The total interests of directors and executives reflect a significant ownership concentration within the company[164]. - The company has a structured approach to reporting interests and positions in accordance with the Securities and Futures Ordinance[165]. Compliance and Regulations - The company has complied with the Corporate Governance Code during the year ended December 31, 2023, except for a deviation from code provision C.2.1[182]. - The Company has established five committees to assist the Board, including Audit, Risk, Nomination, Remuneration, and Inside Information Committees[192]. - The auditor issued an unqualified letter regarding the Group's continuing connected transactions, confirming compliance with relevant regulations[144].

Financial Performance - The company reported a full-year performance for the year ending December 31, 2023, in compliance with the GEM Listing Rules[1]. - Revenue for 2023 was RMB 1,448,376, a decrease of 3.2% compared to RMB 1,496,977 in 2022[11]. - Gross profit increased by 4.2% to RMB 1,002,145, with a gross profit margin of 69.2%, up from 64.3% in the previous year[11]. - Adjusted profit before interest, tax, depreciation, and amortisation was RMB 35,517, a significant improvement from a loss of RMB 339,537 in 2022[11]. - Total assets decreased by 17.8% to RMB 5,395,014, while total liabilities also fell by 20.5% to RMB 4,386,124[12]. - The Group recorded a total loss for the year of RMB 50,475,000 in 2023, compared to a loss of RMB 645,398,000 in 2022[73]. - The Group's loss from operations improved to RMB 21,323,000 in 2023, significantly better than the loss of RMB 558,304,000 in 2022[72]. Corporate Governance - The board of directors confirmed that the information contained in the report is accurate and complete in all material respects[6]. - The company has established various committees, including an audit committee and a risk committee, to enhance corporate governance[9]. - The company is committed to transparency and has made all reasonable inquiries to ensure the accuracy of the report[6]. - The Company has complied with the Corporate Governance Code during the year ended December 31, 2023, except for a deviation from code provision C.2.1[193]. - The Board is responsible for overseeing management's efforts to promote the Company's success while operating effectively and responsibly[195]. Leadership and Management - Mr. Yu Tao has been appointed as the Chief Financial Officer and Executive Director since May 2018, with a background in accounting and experience in financial planning and management[83]. - The company has a strong leadership team with diverse expertise in finance, management, and client services, enhancing its operational capabilities[83][84][85][86]. - The management team has been with the company since 2018, indicating stability and continuity in leadership during critical growth phases[83]. - The independent non-executive directors bring valuable insights from their extensive backgrounds in finance and investment, contributing to strategic decision-making[84][86]. Operational Efficiency - Net cash inflow from operations was RMB 76,998, indicating strong operational efficiency[20]. - The company achieved a consolidated manpower efficiency of approximately 800,000, reflecting improved management efficiency without cost increases[20]. - The company plans to enhance sales efficiency and internal operational efficiency, aiming to exceed a per capita efficiency of 1 million through marketing innovation and better utilization of AI tools[28]. - Youzan's operational indicators focus on balancing transaction volume, active customers, income, and profit as part of its disciplined management approach[22]. Market Position and Strategy - The company aims to be among the first profitable medium-sized enterprise service companies in China, achieving its business objectives for 2023[19]. - Youzan's new value positioning includes providing an "intelligent consumer operation system" to help merchants improve customer repurchase rates and profitability, alongside offering solutions for store digitization and multi-channel data management[23][26]. - The retail industry in China is transitioning from a traffic era to a customer operation era, with Youzan focusing on comprehensive "intelligent consumer operation" services[24]. - Youzan aims to grow from providing digital software to small and medium-sized merchants to offering intelligent consumer operating systems to brand retailers, covering the entire operational process[27]. Financial Resources and Investments - For the year ended December 31, 2023, the Group's cash and cash equivalents were approximately RMB 926,265,000, an increase from RMB 889,944,000 in 2022[97]. - The Group's financial resources and liquidity position remain stable, with significant cash reserves as of year-end 2023[97]. - The Group had no outstanding convertible bonds or warrants as of December 31, 2023[106][107]. - The Group had no significant investments or specific plans for material investments or capital assets[103]. Share Options and Awards - The Share Option Scheme 2019 was terminated on June 29, 2023, but outstanding share options remain valid[108]. - The new Share Option Scheme was adopted at the 2023 Annual General Meeting, with no options granted, exercised, lapsed, or cancelled under this scheme as of December 31, 2023[113]. - The total outstanding options under the 2019 Share Option Scheme as of December 31, 2023, was 255,052,000[113]. - The Share Award Scheme, adopted on May 31, 2018, is valid for 10 years unless terminated early by the Board[115]. Customer and Supplier Relations - Revenue attributable to the Group's five largest customers was less than 5% for both 2023 and 2022, indicating a diversified customer base[93]. - The five largest suppliers accounted for approximately 49.2% of total purchases in 2023, down from 52.2% in 2022, with the largest supplier accounting for approximately 26.4% of total purchases[93]. Acquisitions and Corporate Actions - The Company conditionally agreed to acquire approximately 48.10% of Youzan Technology Inc. for a total consideration of HK$2,618,999,998.02, satisfied by issuing 14,549,999,989 Shares to the sellers[99]. - The completion of the acquisition of Youzan Technology took place on December 29, 2023[100]. - The Company issued 14,549,999,989 Consideration Shares at an issue price of HK$0.18 per Share for an acquisition on December 29, 2023[127]. Research and Development - Youzan Technology Group plans to spend approximately RMB620 million on research and development to widen its product range and enhance infrastructure[132]. - The marketing plan for Youzan Technology Group includes an estimated spending of RMB260 million, primarily for online advertising and engaging more distribution agents[132].

Share Incentive Plan - A total of 310,801,640 shares were granted under the incentive plan for the year ended December 31, 2022[11]. - The fair value of the shares granted on April 1, 2022, and December 1, 2022, was HKD 0.157 and HKD 0.184 per share, respectively[10]. - As of December 31, 2022, the number of unvested shares available for grant was 139,734,843 shares, representing 0.89% of the total issued shares[11]. - The weighted average closing price of the shares prior to the vesting date was HKD 0.17 for the year ended December 31, 2022[10]. - The total number of shares available for issuance under the plan as of the annual report date was 163,581,243 shares[11]. - The first grant under the incentive plan was divided into three tranches, with 50% vesting after two years of continuous service[5]. - The second grant was divided into four tranches, with 25% vesting after each year of continuous service[6]. - The total number of shares granted in the second grant was 12,614,800, with 5,057,800 and 7,557,000 shares forfeited[7]. - The fourth grant had a total of 30,545,100 shares, with 7,800,500 and 8,978,600 shares forfeited[8]. - The plan does not impose any performance targets for the granted shares[10]. Plan A Details - The total number of shares available for issuance under Plan A is 106,428,391 shares as of January 1, 2022, and December 31, 2022[17]. - There is no set cap on the benefits that can be granted to each eligible participant under Plan A[17]. - The plan is effective for a period of 10 years from May 31, 2018, to May 30, 2028, with approximately 5 years and 2 months remaining as of the 2022 annual report date[4]. - No shares have been granted under Plan A since its adoption date[19]. - There is no purchase price applicable for the shares under Plan A[19]. - Eligible participants include any employee of the Youzan Technology Group, including directors and senior management[16]. - There is no specified vesting period for the share rewards granted under Plan A[18]. - No payment is required from selected participants upon acceptance of the reward shares[18]. Announcement and Confirmation - The announcement provides supplementary information that does not affect other disclosures in the 2022 annual report[20]. - The board of directors confirms the accuracy and completeness of the information provided in the announcement[20].

Financial Performance - For the nine months ended September 30, 2023, the group recorded revenue of approximately RMB 1,082,492,000, a decrease of 1.5% compared to the same period last year [3]. - The gross profit for the same period was approximately RMB 748,329,000, an increase of 8.3% year-on-year, with a gross margin of 69.1% [4]. - The operating loss for the nine months was approximately RMB 31,735,000, a significant reduction of 93.8% compared to the operating loss of RMB 510,487,000 in the previous year [4]. - For the three months ended September 30, 2023, the group recorded revenue of approximately RMB 358,198,000, a decrease of 3.1% year-on-year [4]. - The gross margin for the three months increased to 68.9%, up from 67.5% in the same period last year [4]. - The operating loss for the three months was approximately RMB 20,470,000, a decrease of 43.7% compared to the operating loss of RMB 36,375,000 in the previous year [4]. - The total comprehensive loss for the nine months was approximately RMB 41,349,000, compared to RMB 508,450,000 in the previous year [8]. - The company reported a profit of approximately RMB 16,162,000 for the nine months ending September 30, 2023, compared to a loss of RMB 265,612,000 for the same period in 2022 [25]. - The company reported a net loss of RMB 414,000 for the nine months ending September 30, 2023, compared to a net loss of RMB 1,397,000 for the same period in 2022 [28]. Revenue Breakdown - The revenue from merchant solutions for the nine months ended September 30, 2023, was RMB 447.873 million, an increase of 4.0% from RMB 430.513 million for the same period in 2022 [15]. - For the three months ended September 30, 2023, the revenue from subscription solutions was RMB 209.665 million, a decrease of 5.0% compared to RMB 221.777 million for the same period in 2022 [14]. - Subscription solutions revenue for the nine months ended September 30, 2023, was RMB 631,931 thousand, down 4.4% from RMB 660,974 thousand in the same period of 2022 [37]. - Merchant solutions revenue increased by 4.0% to RMB 447,873 thousand for the nine months ended September 30, 2023, compared to RMB 430,513 thousand in the same period of 2022 [37]. Expenses and Costs - Total sales cost for the reporting period was approximately RMB 334,163 thousand, a decrease of 18.1% from RMB 408,049 thousand, mainly due to a 25.8% reduction in labor costs [40]. - Selling expenses decreased by 23.6% to approximately RMB 496,466 thousand, primarily due to a reduction in sales personnel [45]. - Administrative expenses decreased by 53.6% to approximately RMB 115,825 thousand, mainly due to a reduction in administrative staff and one-time severance payments [45]. - Research and development expenses for Q3 2023 were RMB 50,432 thousand, down from RMB 57,869 thousand in Q3 2022, indicating a reduction of about 12.5% [20]. Shareholder Information - The total number of issued shares as of September 30, 2023, was 18,421,642,097 [27]. - The company reported a basic earnings per share attributable to the owners of the company for the nine months ended September 30, 2023, was RMB 0.0009, compared to a loss per share of RMB 0.0151 for the same period in 2022 [12]. - The company did not recommend any dividend payment for the nine months ended September 30, 2023 [4]. - The company’s accumulated losses reached RMB 4,495,355,000 as of September 30, 2023, an increase from RMB 4,511,049,000 [28]. Corporate Governance - The company has complied with the GEM Listing Rules regarding corporate governance, except for a deviation concerning the separation of the roles of Chairman and CEO [61]. - The Audit Committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated results for the nine months ending September 30, 2023, confirming compliance with applicable accounting standards [62]. - The company has maintained a high level of corporate governance to protect shareholder interests [61]. Strategic Initiatives - The company has plans to expand its market presence and enhance product offerings in the upcoming quarters, focusing on technological advancements and strategic partnerships [16]. - The company is actively exploring the integration of artificial intelligence technology with its SaaS products to lower the learning curve for merchants and enhance operational efficiency [35]. - In the third quarter of 2023, the company established a "Key Account Service Department" to enhance service for top clients and improve operational efficiency [35].

Financial Performance - For the nine months ended September 30, 2023, the group recorded revenue of approximately RMB 1,082,492,000, a decrease of 1.5% compared to the same period last year[3]. - The gross profit for the nine months ended September 30, 2023, was approximately RMB 748,329,000, an increase of 8.3% year-on-year[4]. - The gross margin increased to 69.1% for the nine months ended September 30, 2023, compared to 67.5% in the same period last year[4]. - The operating loss for the nine months ended September 30, 2023, was approximately RMB 31,735,000, a significant reduction of 93.8% from the operating loss of RMB 510,487,000 in the previous year[4]. - For the three months ended September 30, 2023, the group recorded revenue of approximately RMB 358,198,000, a decrease of 3.1% year-on-year[4]. - The gross profit margin for the three months ended September 30, 2023, improved to 68.9%, up from 67.5% in the same period last year[4]. - The operating loss for the three months ended September 30, 2023, was approximately RMB 20,470,000, a decrease of 43.7% from the operating loss of RMB 36,375,000 in the previous year[4]. - The total comprehensive loss for the nine months ended September 30, 2023, was RMB 41,349,000, compared to RMB 508,450,000 for the same period in 2022, indicating a significant reduction in losses[8]. - The company reported a profit of approximately RMB 16,162,000 for the nine months ended September 30, 2023, compared to a loss of RMB 265,612,000 for the same period in 2022[25]. - The company reported a total comprehensive loss of RMB (28,531,000) for the three months ended September 30, 2023, compared to RMB (31,775,000) for the same period in 2022, showing a 7% decrease in losses[8]. Revenue Breakdown - Subscription solutions revenue for the nine months ended September 30, 2023, was RMB 631,931 thousand, down 4.4% from RMB 660,974 thousand in the same period of 2022[15]. - The total revenue from merchant solutions for the nine months ended September 30, 2023, was RMB 447,873 thousand, an increase of 4.0% from RMB 430,513 thousand in the same period of 2022[15]. - Merchant solutions revenue increased by 4.0% to RMB 447,873 thousand for the nine months ended September 30, 2023, compared to RMB 430,513 thousand in the same period of 2022[37]. - Subscription solutions revenue decreased by 4.4% to approximately RMB 631,931 thousand from RMB 660,974 thousand due to a decline in the number of paying merchants[38]. Expenses and Costs - Research and development expenses for the nine months ended September 30, 2023, were RMB 156,272 thousand, a decrease of 42.4% from RMB 271,086 thousand in the same period of 2022[20]. - Total sales cost decreased by 18.1% to approximately RMB 334,163 thousand from RMB 408,049 thousand, mainly due to a 25.8% reduction in labor costs[40]. - Selling expenses decreased by 23.6% to approximately RMB 496,466 thousand, primarily due to a reduction in sales personnel[45]. - Administrative expenses decreased by 53.6% to approximately RMB 115,825 thousand, mainly due to a reduction in administrative staff and one-time severance payments[45]. - Other operating expenses decreased by 42.8% to approximately RMB 156,341 thousand, attributed to optimized R&D spending and organizational restructuring[45]. Assets and Liabilities - The company’s total assets as of September 30, 2023, were RMB 1,305,858,000, compared to RMB 1,258,694,000 as of December 31, 2022, indicating growth in asset base[12]. - The company’s total liabilities as of September 30, 2023, were RMB 128,090,000, compared to RMB 140,069,000 as of December 31, 2022, showing a decrease in liabilities[12]. Shareholder Information - The total number of issued shares as of September 30, 2023, was 18,421,642,097 shares[27]. - The company did not recommend any dividend payment for the nine months ended September 30, 2023, consistent with the previous year[27]. - As of September 30, 2023, Whitecrow Investment holds 1,440,601,703 shares, representing 7.82% of the company's equity[59]. - Poyang Lake Investment Limited, a wholly-owned subsidiary of Tencent Holdings, holds 1,036,766,038 shares, accounting for 5.63% of the company's equity[60]. Corporate Governance and Compliance - The company has adhered to the GEM Listing Rules regarding corporate governance, except for a deviation concerning the roles of the Chairman and CEO[61]. - The Audit Committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated results for the nine months ending September 30, 2023, confirming compliance with applicable accounting standards[62]. Strategic Initiatives - The company plans to continue its market expansion and product development strategies to enhance revenue growth in the upcoming quarters[18]. - The company established a "Key Account Service Department" to enhance service for top clients and improve operational efficiency[35]. - The company is actively exploring the integration of artificial intelligence technology with its SaaS products to enhance user experience and operational efficiency[35]. - The company aims to continue focusing on core customer groups for market expansion and improving customer retention rates to optimize operational results[36].

Financial Performance - For the six months ended June 30, 2023, the group recorded revenue of approximately RMB 724,294,000, a decrease of 0.7% compared to the same period last year[3]. - Subscription solutions revenue was approximately RMB 422,266,000, down 3.9% year-on-year, while merchant solutions revenue increased by 5.7% to approximately RMB 300,029,000[3]. - The gross profit for the six months was approximately RMB 501,396,000, representing a 13.6% increase year-on-year, with a gross margin rising from 60.5% to 69.2%[4]. - The operating loss for the six months was approximately RMB 11,265,000, a significant reduction of 97.6% compared to the operating loss of RMB 474,112,000 in the same period last year[4]. - The net loss for the six months was RMB 18,416,000, compared to a net loss of RMB 485,088,000 in the same period last year[8]. - The total comprehensive loss for the period was RMB (1,819,000), compared to RMB (121,554,000) in the same period last year[9]. - Total revenue for the six months ended June 30, 2023, was RMB 724,294,000, a slight decrease from RMB 729,275,000 in the same period of 2022[46]. - The company reported a segment profit of RMB 2,813,000 for the six months ended June 30, 2023, compared to a segment loss of RMB 460,696,000 in the same period of 2022[46]. - The company incurred a comprehensive loss before tax of RMB 22,519,000 for the six months ended June 30, 2023, significantly improved from a loss of RMB 487,575,000 in the same period of 2022[44]. Cash Flow and Assets - The cash and cash equivalents totaled approximately RMB 840,299,000, with a current ratio of 1.05[4]. - The company reported a net cash outflow from operating activities of RMB (7,317) thousand for the six months ended June 30, 2023, compared to RMB (558,568) thousand for the same period in 2022, indicating a significant improvement[17]. - Cash and cash equivalents at the end of the period were RMB 840,299 thousand, slightly up from RMB 831,809 thousand at the end of June 2022[17]. - As of June 30, 2023, total assets amounted to RMB 4,335,018 thousand, a decrease from RMB 4,951,702 thousand as of December 31, 2022, representing a decline of approximately 12.4%[10]. - The company’s total assets as of June 30, 2023, were RMB 1,301,997,000, showing a slight increase from RMB 1,258,782,000 as of December 31, 2022[20]. - The company’s total liabilities as of June 30, 2023, were RMB 133,015,000, compared to RMB 142,558,000 as of December 31, 2022, indicating a reduction in liabilities[20]. - The total assets of the company as of June 30, 2023, amounted to RMB 5,721,920,000, with significant contributions from various segments[46]. Revenue Segmentation - The total revenue from external customers in the merchant services segment was RMB 568,147 thousand for the six months ended June 30, 2023, compared to RMB 573,882 thousand in the same period of 2022, reflecting a decrease of 1.0%[35]. - Subscription solutions generated revenue of RMB 216,547 thousand for the three months ended June 30, 2023, compared to RMB 219,283 thousand in the same period of 2022, reflecting a decrease of 1.0%[34]. - Merchant solutions revenue increased to RMB 151,857 thousand for the three months ended June 30, 2023, up from RMB 144,468 thousand in the same period of 2022, marking a growth of 5.0%[34]. - The company reported external customer revenue of RMB 729,275,000, with notable contributions from third-party payment services and merchant services[46]. Expenses and Cost Management - The company’s total operating expenses for the six months ended June 30, 2023, were RMB 30,429 thousand, compared to RMB 26,965 thousand in the same period of 2022, indicating an increase of 12.3%[39]. - Selling expenses decreased by 30.2% to approximately RMB 331,075,000, down from RMB 474,620,000, mainly due to a reduction in sales personnel and channel commission expenses[80]. - Administrative expenses decreased by 64.2% to approximately RMB 69,869,000, down from RMB 195,039,000, primarily due to a one-time severance payment in the previous year[80]. - Other operating expenses decreased by 50.3% to approximately RMB 105,909,000, down from RMB 213,310,000, attributed to optimized R&D spending and organizational restructuring[80]. Shareholder and Corporate Governance - The total issued share capital of the company remained at 18,421,642,097 shares as of June 30, 2023[63]. - Major shareholders include Whitecrow Investment Ltd. with a 7.82% stake and Poyang Lake Investment Limited, a subsidiary of Tencent Holdings, with a 5.63% stake[91][92]. - The company reported that as of June 30, 2023, the total equity held by directors and senior management was approximately 1,932,771,804 shares, representing 10.49% of total equity[87]. - The audit committee reviewed the unaudited interim results announcement for the six months ended June 30, 2023, and found it compliant with applicable accounting standards and GEM listing rules[101]. - The company has adhered to the corporate governance code except for a deviation regarding the separation of the roles of chairman and CEO, which is deemed appropriate under the circumstances[101]. Strategic Initiatives and Future Outlook - The company aims to enhance operational efficiency and improve cash flow for sustainable long-term development in 2023[71]. - The company launched its first AI product "Jia Wo Intelligent," which supports promotional content generation and event planning[70]. - The group reported a decrease in related party revenue from RMB 3,134,000 in the first half of 2022 to RMB 1,546,000 in the first half of 2023[67]. - The company has allocated approximately HKD 30.9 million for potential strategic investments and acquisitions, which has also been fully utilized[84]. - The company has not reported any significant events after the reporting period[85].

Financial Performance - For the six months ended June 30, 2023, the group recorded revenue of approximately RMB 724,294,000, a decrease of 0.7% compared to the same period last year[3]. - Subscription solutions revenue was approximately RMB 422,266,000, a decrease of 3.9% year-on-year, while merchant solutions revenue increased by 5.7% to approximately RMB 300,029,000[3]. - The group's gross profit for the six months was approximately RMB 501,396,000, an increase of 13.6% compared to the previous year, with a gross profit margin rising from 60.5% to 69.2%[4]. - For the three months ended June 30, 2023, the group recorded revenue of approximately RMB 369,477,000, an increase of 0.8% year-on-year[4]. - Total revenue for the six months ended June 30, 2023, was RMB 724,294,000, a slight decrease from RMB 729,275,000 in the same period of 2022[7]. - The company reported a total comprehensive loss of RMB 1,819,000 for the three months ended June 30, 2023, compared to a loss of RMB 121,554,000 for the same period in 2022[9]. - For the six months ended June 30, 2023, the earnings per share attributable to the company's owners was RMB 0.0010, compared to a loss per share of RMB 0.0153 for the same period in 2022[21]. - The company reported a profit of approximately RMB 18,114,000 for the six months ended June 30, 2023, compared to a loss of RMB 264,287,000 for the same period in 2022[52]. Operating Expenses - Operating loss for the six months was approximately RMB 11,265,000, a significant reduction of 97.6% compared to an operating loss of RMB 474,112,000 in the same period last year[4]. - The company’s operating expenses for the six months ended June 30, 2023, were RMB 331,075,000, compared to RMB 474,620,000 in the same period of 2022, showing a reduction of approximately 30.2%[7]. - Administrative expenses decreased by 64.2% to approximately RMB 69,869,000, down from RMB 195,039,000, mainly due to one-time severance payments and a reduction in administrative staff[80]. - Other operating expenses decreased by 50.3% to approximately RMB 105,909,000, down from RMB 213,310,000, attributed to optimized R&D spending and organizational restructuring[80]. Cash and Liquidity - As of June 30, 2023, the group had cash and cash equivalents totaling approximately RMB 840,299,000, with a current ratio of 1.05[4]. - The company’s cash and cash equivalents decreased to RMB 3,045,717,000 as of June 30, 2023, from RMB 3,592,688,000 at the end of 2022[10]. - The company reported a decrease in cash and bank balances to RMB 602,574,000 as of June 30, 2023, down from RMB 865,497,000 as of December 31, 2022[59]. - The total cash and cash equivalents at the end of June 2023 amounted to RMB 840,299,000, slightly up from RMB 831,809,000 at the end of June 2022[17]. Assets and Liabilities - The company's total assets decreased to RMB 4,335,018,000 as of June 30, 2023, from RMB 4,951,702,000 as of December 31, 2022[10]. - The total liabilities as of June 30, 2023, were RMB 1,301,997,000, showing a slight increase from RMB 1,258,782,000 as of December 31, 2022[20]. - The company’s total equity as of June 30, 2023, was RMB 1,136,566,000, down from RMB 1,336,823,000 at the beginning of the year[16]. Revenue Sources - The company generated external customer revenue of RMB 724,294,000, with the merchant services segment contributing RMB 573,882,000[42]. - The total revenue from external customers in China (excluding Hong Kong) was RMB 568,147,000 for the six months ended June 30, 2023, down from RMB 573,882,000 in 2022, a decrease of about 1%[35]. - The company’s other revenue sources totaled RMB 1,999,000 for the six months ended June 30, 2023, down from RMB 6,226,000 in 2022, reflecting a significant decline of approximately 67.9%[34]. Strategic Initiatives - The company aims to enhance its market position through ongoing product development and strategic initiatives[2]. - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[32]. - The company continues to focus on providing online and offline e-commerce solutions, indicating a strategic emphasis on SaaS and payment services[18]. Shareholder Information - Major shareholder Whitecrow Investment Ltd. holds 1,440,601,703 shares, representing 7.82% of the total equity[91]. - Tencent Holdings Limited, a major shareholder, also holds 1,036,766,038 shares, equivalent to 5.63% of the total equity[92]. Corporate Governance - The board confirmed that the information provided in the report is accurate and complete, with no misleading elements[2]. - The audit committee reviewed the interim results for the six months ending June 30, 2023, confirming compliance with applicable accounting standards[101]. - The company has adhered to the corporate governance code, except for a deviation regarding the roles of chairman and CEO[100].

Financial Performance - For the three months ended March 31, 2023, the group recorded a gross profit of approximately RMB 246,230,000, an increase of 11.7% compared to RMB 220,477,000 in the same period last year[3]. - The gross profit margin increased from 60.8% in the same period last year to 69.4% in the current year[4]. - The operating loss for the three months ended March 31, 2023, was approximately RMB 1,667,000, a significant decrease of 99.5% compared to an operating loss of RMB 344,007,000 in the same period last year[4]. - The company reported a net loss of RMB 9,256,000 for the three months ended March 31, 2023, compared to a net loss of RMB 348,280,000 in the same period last year[5]. - The total comprehensive loss for the period was RMB 10,999,000, down from RMB 355,121,000 in the previous year[7]. - The group’s revenue for the period was RMB 354,817,000, compared to RMB 362,802,000 in the same period last year[6]. - The company’s basic earnings per share for the period was RMB 0.0004, compared to a loss per share of RMB 0.0106 in the same period last year[5]. - The group reported a loss of approximately RMB 9,256,000 for the three months ended March 31, 2023, indicating significant uncertainty regarding its ability to continue as a going concern[9]. - Revenue from customer contracts for the three months ended March 31, 2023, was RMB 354,817,000, a decrease of 2.7% compared to RMB 362,802,000 for the same period in 2022[11]. - The total revenue for the group in Q1 2023 was approximately RMB 354.8 million, a decrease of about 2.2% from RMB 362.8 million in the same period last year[31]. Revenue Breakdown - Subscription solutions generated revenue of RMB 205,719,000, while merchant solutions brought in RMB 148,172,000 for the three months ended March 31, 2023[11]. - In Q1 2023, the revenue from subscription solutions was approximately RMB 205.7 million, a decrease of 6.5% compared to RMB 219.9 million in the same period last year[32]. - Revenue from merchant solutions increased by 6.3% year-on-year to approximately RMB 148.2 million, up from RMB 139.4 million[33]. Cost and Expenses - The company reported a decrease in the cost of goods sold to RMB 487,000 for the three months ended March 31, 2023, down from RMB 1,573,000 in the same period of 2022[18]. - The total cost of sales decreased by 23.7% year-on-year to approximately RMB 108.6 million, primarily due to a significant reduction in server and SMS costs[36]. - Sales expenses decreased by 38.6% to approximately RMB 157,128,000 from RMB 255,966,000 year-on-year[41]. - Administrative expenses decreased by 73.0% to approximately RMB 33,338,000 from RMB 123,324,000 year-on-year[41]. - Other operating expenses decreased by 67.5% to approximately RMB 56,026,000 from RMB 172,251,000 year-on-year[41]. - Research and development expenses for the three months ended March 31, 2023, were RMB 55,999,000, significantly lower than RMB 172,195,000 in the same period of 2022, reflecting a reduction in investment in R&D[14]. Financial Position - As of March 31, 2023, cash and cash equivalents amounted to approximately RMB 842,118,000, down from RMB 889,944,000 as of December 31, 2022[42]. - Total borrowings as of March 31, 2023, were approximately RMB 481,377,000, slightly up from RMB 480,986,000 as of December 31, 2022[42]. - The total equity attributable to the owners of the company as of March 31, 2023, was RMB 1,044,995,000, a decrease of RMB 8,337,000 from the previous period[22]. Corporate Governance - The company has adhered to the corporate governance code, except for a deviation regarding the separation of roles between the chairman and CEO, which is deemed appropriate by the board[52]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests[52]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial results for the three months ending March 31, 2023, and found them compliant with applicable accounting standards[53]. - The company’s board of directors includes four executive directors and three independent non-executive directors as of the report date[54]. Shareholder Information - As of March 31, 2023, Whitecrow Investment holds 1,440,601,703 shares, representing 7.82% of the company's equity[50]. - Poyang Lake Investment Limited, a wholly-owned subsidiary of Tencent Holdings Limited, holds 1,036,766,038 shares, accounting for 5.63% of the company's equity[51]. - The company’s major shareholders have no other interests in the company's shares or related securities as of March 31, 2023[49]. Events and Developments - The company held a spring launch event on April 10, 2023, in Hangzhou, where it upgraded its private domain operation solutions and launched the data integration platform "Youzan iPaaS" and its first AI product "Add Me Smart"[28]. - The company provided a range of SaaS products through its subscription solutions, including Youzan WeMall and Youzan Retail, to help merchants enhance operational efficiency[28]. - The company’s management discussed the importance of personalized services and cloud business solutions to support merchants in expanding their customer base and improving operational efficiency[28]. - In Q1 2023, the total GMV generated through Youzan's solutions reached approximately RMB 23.4 billion, a year-on-year increase of about 2%[29]. - The total GMV from store SaaS business was approximately RMB 11.3 billion, accounting for 48% of the total GMV, with a year-on-year growth of about 26%[29]. - The average sales per merchant in Q1 2023 was approximately RMB 300,000, representing a year-on-year increase of about 16%[29]. - As of March 31, 2023, the number of paying merchants was 78,389, with 64% subscribing to e-commerce SaaS and 36% to store SaaS[29]. Stock Options - The company has granted stock options under a new stock option plan, with an exercise price of HKD 0.385, valid until January 19, 2028[6]. - The stock options granted in 2019 have an exercise price of HKD 1.00 and are valid until June 30, 2024[4].